Wednesday, November 03, 2010

ADP: Private Employment increases by 43,000 in October

by Bill McBride on 11/03/2010 08:15:00 AM

ADP reports:

Private-sector employment increased by 43,000 from September to October on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The estimated change of employment from August to September was revised up from the previously reported decline of 39,000 to a smaller decline of 2,000.

Since employment began rising in February, the monthly gain has averaged 34,000 with a range of -2,000 to +65,000 during the period. October’s figure is within this recent range and is consistent with the deceleration of economic growth that occurred in the spring. Employment gains of this magnitude are not sufficient to lower the unemployment rate.
Note: ADP is private nonfarm employment only (no government jobs).

The consensus was for ADP to show an increase of about 20,000 private sector jobs in October, so this was above consensus.

The BLS reports on Friday, and the consensus a 60,000 increase in payroll jobs in October, on a seasonally adjusted (SA) basis and for the unemployment rate to stay steady at 9.6%.